www.iva.co.uk

Could anyone tell me if I wanted to make a settlement offer to pay off the remaining 2 years of my IVA what amount or % of debt would my creditors be looking for?

They would be looking to get back what they agreed to accept, without good reason to close early -- so the sum would be based upon the number of months you have left multiplied by the monthly amount. Do you have an equity clause to deal with ? If so the offer would have to be increased by 12 payments.

Thanks Foggy, will creditors want to see a good reason why I would make an offer for early settlement?

My reason is the IVA is simply getting me down and my parents would be willing to help with the payment.

If they are getting near to what they agreed up front then there need be no compelling reason ( they could still say no, but, I imagine, would prefer a lump sum in one rather than dribs and drabs going forward). They are often just as keen as you are to get shot of an IVA. As I say, they get the money earlier, plus they are then able to write the toxic debt off their books.

If there are compelling reasons which make the prospect of the IVA failing and them getting less in the long run, they are likely to consider smaller offers -- we are talking long term illness, no prospect of re-employment if the job goes west, in my case, simply unable to make any payments following a marriage break down.

Creditors are generally very happy to accept lump sum settlements to close IVAs off at an earlier juncture, but do expect PPI matters to need to also be finalised before the IP is likely to be able to formally close your case.

I have spoken to my IP regarding early settlement and I can call back for a variation interview whenever I want.

The burning question is how much to offer??
Remaining in my IVA is £6,260 I have no property or PPI owing.
My parents are paying this for me but I feel I have to try and reduce this amount as I know they have little money themselves.

Do people in the main offer less or more or the exact amount? Not meaning to risk a No from my creditors by not offering enough.

I guess I'm asking from the people that know is what % I should be looking at?

You need to be as close to the £6260 as possible if the reason you want to end early is just to get it off your back. However saying that, I have heard of some cases where people offer much less in the same circumstances and have had it approved by creditors.

Sometimes it depends on the mix of creditors you have and whether there were any modifications in the proposal stating a minimum dividend had to be achieved.

Update..

My IVA settlement offer was accepted however EIC now have to check if I have any PPI outstanding. I have already done this myself 2 years ago and passed on my findings to GT but it has to be done by an official company such as EIC.

EIC seem to be dragging their feet a little and I cant even get a reply from them to chase up any progress made, GT don't seem to be that bothered and keep referring me to EIC.

All I want now is to get a release letter and start to build up my credit score, I feel this could now be delayed.

Has anyone any advise on how to push this on?

Steven

I wish I knew! EIC have had my PPI claims for over 8 months now and keep sending me more and more claim forms ( mostly ones already filled in) only had 1 claim from them so far but got 8 outstanding so will be no time soon